Certified Government Financial Manager (CGFM) Practice Exam 2025 - Free CGFM Practice Questions and Study Guide

Question: 1 / 875

According to OMB Circular A-123, what is one of management's responsibilities regarding internal controls?

To develop a complete financial disclosure statement

To assess the adequacy of internal controls in programs and operations

One key responsibility of management as outlined in OMB Circular A-123 is to assess the adequacy of internal controls in programs and operations. This assessment is fundamental because internal controls are designed to ensure compliance with laws and regulations, aid in the efficient and effective operation of an organization, and safeguard the integrity of financial reporting. By evaluating the effectiveness of these controls, management can identify weaknesses or areas for improvement, which is critical for mitigating risks and enhancing accountability. This process ensures that the organization operates as intended and achieves its objectives efficiently while adhering to applicable financial regulations and standards.

The other options, while relevant to financial management, do not specifically highlight the direct management responsibility concerning internal controls as emphasized in OMB Circular A-123.

Get further explanation with Examzify DeepDiveBeta

To prepare annual budgets for all departments

To submit audit reports to the federal government

Next Question

Report this question

Download Certified Government Financial Manager (CGFM) Practice Exam PDF Study Guide
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy